Fundamental analysis:
The Australian dollar remained volatile around 0.71129 against the US dollar. After Australia's CPI unexpectedly rose in the fourth quarter this week, the conditions for the RBA to further raise interest rates in the next few months have been met. The RBA is expected to continue raising the official cash rate (OCR) in 2023, peaking at 3.85% in May this year. However, global supply pressures are likely to ease significantly in 2023, with headline inflation in Australia falling to 3.7% by the end of the year.
Australian dollar AUDUSD - 4-hour K-line chart shows:
Brief technical analysis:
4-hour chart: high short-term narrow-range consolidation, the market struggles with high-level range fluctuations, and there is no direction guidance in the short term. The MACD index is in the bullish area and moves down, and the RSI index is hovering weakly above the 50 balance line;
Long-short turning point: 0.71083
Suppression: 0.71344, 0.71510
Support: 0.70932, 0.70768
Trading strategy: Bullish above 0.71083, target 0.71344, 0.71510
Alternative strategy: bearish below 0.71083, target 0.70932, 0.70768